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DOMO Beats on Q4 Earnings, Subscription Revenues Increase Y/Y

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Domo (DOMO - Free Report) reported fourth-quarter fiscal 2021 non-GAAP loss of 32 cents per share that beat the Zacks Consensus Estimate by 27.3% and was narrower than the year-ago quarter’s loss of 85 cents.

Revenues of $56.8 million increased 23.1% year over year, primarily driven by customer addition. The figure also beat the consensus mark by 5.7%.

Domo’s revenues for fiscal fourth quarter benefited from higher subscription revenues, much similar to its Zacks Internet-Software industry peers like Anaplan (PLAN - Free Report) , Nice (NICE - Free Report) and Workday (WDAY - Free Report) .

Notably, Anaplan’s fourth-quarter fiscal 2021 subscription revenues (91.9% of total revenues) rallied 25.7% year over year to $112.6 million. Cloudera’s fourth-quarter fiscal 2021 subscription revenues (91.3% of revenues) rose 13.7% year over year to $206.8 million. Workday reported fourth-quarter fiscal 2021 subscription revenues (88.9% of total revenues) of $1.01 billion, up 19.8% year over year.

Domo, Inc. Price, Consensus and EPS Surprise

 

Domo, Inc. Price, Consensus and EPS Surprise

Domo, Inc. price-consensus-eps-surprise-chart | Domo, Inc. Quote

 

Domo’s subscription revenues contributed 87.9% of revenues and totaled $50 million, up 25.7% year over year. Moreover, this Zacks Rank #3 (Hold) company’s professional services revenues increased 7% to $6.4 million, representing 12.1% of revenues. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quarter Details

International revenues represented 24% of total revenues, unchanged sequentially.

Billings increased 27.5% year over year to $82.8 million. The solid growth was driven by strong new customer count growth, upsells and expansions, and high retention rates.

Domo witnessed gross retention rate of almost 90%. The company continues to invest in retention and its long-term target is 90% or better. Further, net retention rate remained above 90%.

Remaining performance obligations (“RPO”) grew 21% year over year to $282.3 million. Additionally, RPO expected to be recognized as revenues over the next 12 months grew 23% year over year.

In the quarter under review, gross profit rose 33.5% year over year to $42.3 million. Gross margin expanded 580 basis points (bps) to 74.5%.

Notably, non-GAAP subscription gross margin was 72.2% in the reported quarter, up 630 bps.

GAAP sales & marketing expenses decreased 3.4% year over year to $31.2 million. GAAP research & development expenses also declined 5.1% to $16.6 million. However, GAAP general & administrative expenses increased 25.3% to $11.4 million.

Total non-GAAP operating expenses decreased 5.2% year over year to $50.4 million, reflecting benefits of solid cost management.

Non-GAAP operating loss of $7.2 million was narrower than the year-ago quarter’s loss of $21.1 million.

Balance Sheet & Cash Flow

As of Jan 31, 2021, Domo had cash, cash equivalents and short-term investments of $90.8 million compared with $83.8 million as of Oct 31, 2020.

Moreover, adjusted net cash used in operations was $15.3 million against net cash flow from operations of $1.4 million in the previous quarter and $3.5 million in the year-ago quarter.

Guidance

For first-quarter fiscal 2022, revenues are anticipated between $56.5 million and $57.5 million. Non-GAAP net loss per share is expected between 43 cents and 47 cents.

Billings are expected to total $54 million, up 16% year over year.

For fiscal 2022, revenues are anticipated between $240 million and $245 million. Non-GAAP net loss per share is expected between $1.53 and $1.63.

For fiscal 2022, billings growth is expected to be 16%.

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